US mobile industry brings USD 475 bln to the US economy every year - study

The US mobile industry contributes USD 475 billion to the US economy every year, supports 4.7 million jobs and accounts for 2.6 percent of total US GDP, making it equivalent to the 24th largest economy in the world, according to a new report by Accenture for 2018 so far, commissioned by CTIA. The next generation of mobile technology could create 3 million new jobs and boost US GDP by USD 500 billion, supported by a projected USD 275 billion worth of investment in the sector. 

The US has over 396 million active mobile devices and about 1.2 subscriptions per person. Traffic has jumped 238 percent over the past two years. Per subscriber, traffic is set to reach 22 GB in 2022, from the current level at 7 GB per month, per active smartphone. The number of connected devices, such as fitness trackers, amounts to 180 million. 

Breaking down the USD 475 billion figure, 31 percent (USD 147 billion) will come from direct activity, such as the sale of products and services through carriers or telecom resellers. About 44 percent (USD 207 billion) will come from indirect activity, or those industries that supply the mobile sector, such as the production of semiconductor content for smartphones. The last 25 percent (USD 121 billion) will come from induced activity, from increased household spending on goods such as restaurants, due to income earned from the mobile industry or its suppliers. 

In terms of jobs, each direct mobile job results in 7.7 jobs, placing the sector ahead of others, such as restaurants (1.5) and hardware manufacturing (3.9). In terms of dollar contributions, every direct GDP contribution dollar from the mobile industry generates USD 3.20 of total GDP impact across the broader economy.

Accenture said that to keep pace with rising consumer demand for mobile data and to build out 5G networks, carriers will need to deploy about 800,000 small cells over the next few years.